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Oracle Stock Dips As AI And Cloud Expansion Drive Growth But Strain Cash Flow

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us

Oracle Corporation (ORCL) is trading near $280.97, down approximately 3.64 percent from the prior close. The stock has experienced intraday volatility, with a high of $293.60 and a low of $272.84.

Oracle's recent first quarter 2026 results showed revenue of $14.9 billion, up 12 percent year-over-year, with cloud revenue growing 28 percent. The company's Remaining Performance Obligations (RPO) jumped 359 percent to $455 billion, signaling a large backlog of contracted future revenue.

However, while adjusted earnings per share rose 6 percent to $1.47, GAAP earnings dipped 2 percent to $1.01 per share. Oracle is also planning sizable capital expenditures, or CapEx, to scale out AI and cloud infrastructure, a move that could pressure short-term profitability and cash flow.

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